China considers Bitcoin and cryptos investment tools, VET and NEO prices soar

  • The deputy governor of the People’s Bank of China stated that Bitcoin and cryptocurrencies are investment tools.
  • China will issue new regulations in the future as stablecoins are gaining traction as payment solutions.
  • VeChain and NEO prices soar as the recent announcement was made.

China now considers cryptocurrencies like Bitcoin as investment tools rather than currencies. China-friendly VeChain and NEO prices surge by 40-65% amid the announcement. 

Stricter regulations will arise as stablecoins gain traction

Li Bo, the deputy governor of the Chinese central bank, spoke at the Boao Forum regarding the regulatory issues around Bitcoin, and other cryptocurrencies, including stablecoins. 

The deputy governor further stated that Bitcoin is an alternative investment asset and not a currency in itself. The main role that cryptocurrencies should play in the future is as an investment tool or alternative asset, he said. Li stated:

Since it is used as an investment tool, many countries, including China, are studying what kind of regulatory environment should be applied to this investment method, and to ensure that speculation in such assets will not cause serious financial risks.

The use of stablecoins as payment solutions could quickly gain traction; however, Li emphasized that even stricter regulations are needed than the rules currently in place for Bitcoin. For stablecoins that are issued by private companies, Li said that they must be subject to “strict supervision like banks or quasi-bank financial institutions.”

China is well-known as a non-crypto-friendly country as it does not consider cryptocurrencies as legal tender. The Asian country imposed a blanket ban on all initial coin offerings (ICO) and shut down crypto exchanges. However, in mid-2019, the world’s second-largest economy declared Bitcoin as virtual property with value. 

Chinese tech giant Meitu also raked in $100 million in Bitcoin and Ether as part of the firm’s treasury allocation plan. The Xiamen-headquartered tech firm further believes that cryptocurrencies are better stores of value than fiat. 

The central bank, the People’s Bank of China, further clarified that owning Bitcoin in the country is legal. Mining operations are also legal, as China accounts for around 65% of all Bitcoin mining globally. A recent electrical grid blackout in the Xinjiang province led to a decline in Bitcoin’s hash rate. 

Before new regulatory measures are introduced, current measures and practices will be maintained. 

VeChain and NEO prices soar with China’s announcement

While the rest of the crypto market is just waking up from the massive price crash this weekend, VeChain and NEO have witnessed staggering price surge – gaining 40% and 65%, respectively, in the past 24 hours.

VeChain price currently sits at $0.27, and NEO price climbed to $123.33 in the early Asian trading hours on April 19. 

The Chinese-based NEO and VeChain cryptos witnessed similar price growth, outpacing other digital assets when China’s President Xi Jinping announced several blockchain initiatives in the country.

The crypto market was sent into a meteoric bullish rally, especially the cryptocurrencies with strong links to China. NEO gained over 70% when Xi announced the country’s push for blockchain, while VeChain surged by over 110% in the following two weeks. In contrast, the rest of the cryptocurrency market gained an average of 17% over the same period. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin continues to range higher, but altcoins suffer

Bitcoin price has been on a tear lately, but Ethereum and Ripple have failed to perform as fear plagues the cryptocurrency markets. As a result, altcoins are down in the dumps with their dull rallies.

More Bitcoin News

MATIC price eyes 22% advance after dYdX lists Polygon

MATIC price has seen a massive bull rally over the past week. The recent listing of MATIC-USD perpetual on the dYdX platform and other developments might push Polygon on another leg-up.

More Polygon News

SafeMoon price awaits 20% bounce after SAFEMOON surges on Dogecoin SpaceX involvement

SafeMoon price has broken out of a parallel channel that has sealed the asset in consolidation since May 25. The rise in SAFEMOON has been propelled by CEO John Karony after he revealed a significant involvement in the cryptocurrency space.

More SafeMoon News

Dogecoin positions itself for rally that may never come

Dogecoin price appears to be bullish and shows signs of a potential new uptrend. However, this upswing needs confirmation, which will arrive after DOGE produces a decisive close at a critical resistance level.

More Dogecoin News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast